AGENDA #4m

MEMORANDUM

TO: Mayor and Town Council

FROM: W. Calvin Horton, Town Manager

SUBJECT: Bids for Comprehensive Rehabilitation Work at the Airport Gardens Public Housing Neighborhood

DATE: June 14, 2004

The attached resolution would accept a bid and award a contract in the amount of $779,000 to Carl Garris & Son, Inc. for rehabilitation work for 18 apartments at the Airport Gardens neighborhood.

Funding for this project is available through the Housing Capital Fund and Community Development Block Grant Program. The total budget allocated for this project is $919,328.

BACKGROUND AND DISCUSSION

Project Description

The Airport Gardens public housing neighborhood has 26 apartments and is one of the Town’s oldest public housing developments. This neighborhood consists of two-, three- and four-bedroom apartments and was occupied in 1972.

Although the interiors of the Airport Gardens apartments have been refurbished within the past five years, the apartments have not had comprehensive rehabilitation work since being built. Therefore, these apartments require complete retrofitting of the kitchens and bathrooms, the replacement of floor tile, doors, windows, siding and painting. The furnaces and water heaters also need to be replaced because they require frequent repair work and are not energy efficient. Extensive site work is needed to eliminate erosion and drainage problems.

On July 5, 2000, the Council adopted a resolution authorizing the inclusion of air conditioning in public housing renovations. Therefore, air conditioning is to be included in the Airport Gardens renovations.

Bid Process

In November 2003, the Town solicited bids for the renovation of the Airport Gardens public housing neighborhood. The renovation work was bid as a base bid and four alternates. The base bid included comprehensive rehabilitation work in 8 apartments. Alternates 1 through 4 included comprehensive renovations in 8 apartments, an additional 10 apartments, site rehabilitation work and work associated with construction of parking overlay, respectively.

On December 17, 2003, four bids were received and opened for the renovation work. Due to limited amount of funding, only a portion of the renovation work could be awarded. On January 28, 2004, the Council accepted a bid and awarded a contract in the amount of $757,000 for comprehensive rehabilitation work on 18 of the 26 apartments at the Airport Gardens neighborhood. The 18 apartments were included in the base bid for eight apartments and an additional 10 apartments in Alternate 2.

On February 6, 2004, we received a written complaint from one of the unsuccessful bidders on this project raising concerns on how the bidding process was conducted and how the lowest bidder was determined. As a result of the bid protest, the U.S. Department of Housing and Urban Development (HUD) in the Greensboro Public Housing Office conducted a review of all documentations pertaining to the bid procedures of the Airport Gardens renovation work.

On April 8, 2004, we received a determination from HUD that the Town’s written selection procedures did not include a clear and accurate description regarding the alternates included in the proposed construction contract, which was a violation of the federal procurement standards. HUD officials strongly suggested that the Town “reject all bids for this project and re-bid the procurement”.

On April 14^,2004, the Council directed the Town Manager to not execute the pending contract for this project rehabilitation work and to re-bid the project rehabilitation work in accordance with the directions from HUD to provide a clear and accurate description regarding the alternates included in the proposed construction contract.

Re-Bid Process

The procurement documents were re-written to include a clear and accurate description and were reviewed and approved by the Assistant Town Manager and Town Attorney prior to publication for re-bidding. Also, HUD officials from the Greensboro Public Housing Office reviewed and approved the procurement documents for the Airport Gardens renovation work.

The renovation work was solicited as a bid with no alternates. The bid includes the comprehensive rehabilitation work in 18 of the 26 apartments at the Airport Gardens neighborhood.

In accordance with N. C. General Statute 143-128, a Notice To Bidders was published in The Chapel Hill News, Chapel Hill, North Carolina on May 2, 2004, and in the Greater Diversity News, Wilmington, North Carolina on May 6, 2004. Notice To Bidders were mailed to seventy contractors (including General, Electrical, Plumbing and Mechanical contractors). Specifications and contract documents were on file in the office of the Architect, LDA Architecture of Raleigh, North Carolina, and the plan rooms of F. W. Dodge, Associated General Contractors, and Construction Market Data in Raleigh, North Carolina.

On June 3, 2004, the following bids were received and opened:

VENDOR BID AMOUNT

(18 Apts.)

Carl Garris & Sons, Inc. $ 779,000

Lake View, SC

Cornerstone Construction $1,057,666

Raleigh, NC

Patriot Building, Inc. $1,203,500

Hillsborough, NC

Evaluation of Bids

The bids were reviewed by Town staff and LDA Architecture. Three contractors submitted bids. The bid of Carl Garris & Son, Inc. in the amount of $779,000 was the lowest responsive bid for the renovation work in 18 apartments at the Airport Gardens neighborhood.

Budget

The Airport Gardens renovations project budget is funded by the Housing Capital Fund and Community Development Block Grant Program. Funds available for the contract are sufficient to cover the bid amount. Sources of funding for the Airport Gardens renovations are:

Funding Source Amount

2004 Community Development Funds $150,000

2003 Housing Capital Funds $340,513

2002 Housing Capital Funds $428,815

TOTAL $919,328

The bid amount is $779,000, leaving an estimated contingency of $140,328. Any remaining funds after the completion of this contract could be used at a later time for renovation work in the remaining 8 apartments and the site work at the Airport Gardens neighborhood.

CONCLUSION

Carl Garris & Son, Inc. was the contractor for the Town’s rehabilitation of the Lindsay Street public housing community in 2000 and we were pleased with their work. In addition, we contacted references to determine the low bidder’s financial status, stability, reputation, quality and timeliness of their work, responsiveness to their clients and sensitivity to neighbors of the construction work. Based on this information, we believe that Carl Garris & Son, Inc. is a responsible contractor as well as the lowest responsive bidder.

We believe that with the use of future funding from the Community Development and Capital Fund Programs, the remaining renovation work at Airport Gardens can be done as funds become available.

If the Council awards this bid to Carl Garris & Son, Inc., we expect renovation work to begin on the 18 apartments in July 2004 and to be completed by spring 2005.

RECOMMENDATION

Manager’s Recommendation: That the Council adopt the attached resolution accepting the bids and awarding a contract to Carl Garris & Son, Inc. in the amount of $779,000 for the comprehensive renovation of 18 of the 26 apartments at the Airport Gardens public housing neighborhood.

A RESOLUTION ACCEPTING AND AWARDING THE BID FOR THE COMPREHENSIVE REHABILITATION OF AIRPORT GARDENS APARTMENTS (2004-06-14/R-10)

WHEREAS, the Town of Chapel Hill solicited formal bids by advertisement in The Chapel Hill News, Chapel Hill, North Carolina on May 2, 2004, and in the Greater Diversity News, Wilmington, North Carolina on May 6, 2004, in accordance with G.S. 143-128 for the construction work; and

WHEREAS, the following bids were received and opened June 3, 2004: